Starbucks China posts record revenue of $6 billion in Q1
The coffee behemoth delivered solid profit growth and its first ever $6 billion revenue quarter in Q1.
Starbucks reported another quarter of record financial results in Q1 of fiscal 2018, with consolidated revenues up 6% over last year. "China grew revenues 30% in Q1, with the strategic acquisition of East China positioning us to accelerate our growth in the key China market,” said Kevin Johnson, Starbucks' president and CEO. “Today, Starbucks has two powerful, independent but complementary engines driving our global growth, the U.S. and China. Our work to streamline the company is sharpening our focus on our core operating priorities.”
Starbucks chief financial officer Scott Maw said, “We are laser-focused on accelerating growth in China and driving improvement across the U.S. business as we move into and through the back half of the year, and remain committed to delivering on the long-term targets we announced last quarter.”
Net revenues for the China/Asia Pacific segment grew 9% over Q1 to $843.7 million in Q1 FY18, primarily driven by incremental revenues from 1,033 net new store openings over the past 12 months and a 1% increase in comparable store sales.
The company's operating income for the quarter grew 20% to $196.8 million over Q1 FY17 operating income of $163.4 million.
